SACRAMENTO (CBS13) — There are new developments in the plans for a new Sacramento arena – a plan that may include a change of ownership for the building.
CBS 13 has learned that under the plan, the Maloofs would be just the tenants, while the arena itself would have new owners and operators.
A surcharge on sporting events and concerts could be just the ticket to help fund a new arena – along with higher hotel fees for overnight visitors – plus additional rental car costs for travelers in the Sacramento region. Those three options could help finance the $387 million needed for a downtown arena – a venue that promoters say will provide an economic shot in the arm.
Chris Lehane, executive director for Think Big Sacramento told CBS 13 the new arena “will create 4,000 jobs, $7 billion in revenue over the 30 year period for the facility.”
Under the plan, the new arena would be owned by the city of Sacramento – and operated by a private company. The Maloofs would maintain control of the Kings, but the team would be a tenant in the new building – just like the Lakers are at the Staples Center in Los Angeles.
Sacramento could generate additional revenue by selling city owned land to commercial developers – but do the numbers pencil out?
Sanjay Varshney, the dean of the College of Business Administration at Sacramento State University, told CBS 13 that having users pay up front fees is a viable plan.
“In many other cities, a similar plan has worked. And for Sacramento, I think this is truly a test for Sacramento,” Varshney said.
In the meantime, promoters have just 21 days to finalize the plan. The Maloofs had no specific comments today – but they will very likely have plenty to say about the final plan when it’s unveiled September 8th – at the Sacramento Press Club.